The US Dollar was relatively stable on Wednesday after a rebound yesterday as markets await the FOMC Minutes due later today for further insight into policymakers’ expectations.
At the same time, the currency benefited from easing trade tensions and firm comments from Federal Reserve officials, although fiscal concerns could continue to weigh on the currency.
Tuesday’s rebound in US consumer confidence provided support to the dollar. The Conference Board Consumer Confidence Index surged to 98.0 in May, signaling improving household sentiment and optimism around business and labor market conditions.
Meanwhile, US Treasury yields stabilised to a certain extent, as Minneapolis Fed President Neel Kashkari advocated for maintaining current interest rates to monitor the inflationary effects of tariffs. New York Fed President John Williams reinforced this cautious stance.
